Not true.

The sentences was more because of they want to introduce the islamic principle of KWSP account.

The obligation of minimum 2.5% was all along since last time.
Nothing change, so there is no difference at all.

Min 2.5%, while EPF board has the power to declare interest or rate at their wish based on performance of the fund.

Just they cannot put the minimum 2.5% into the islamic principle hence the sentence was being drafted like that.

The issue is similar to conventional FD/deposit, vs islamic deposit.

There is nothing change apart from islamic KWSP account concern and the non-Malaysian account.

If implemented an EPF account holder need to choose to stay in conventional account or change to the new KWSP-i. These 2 accounts would have 2 diff dividend rate of at least 2.5%. Correct?

http://www.themalaysianinsider.com/malaysi...ccount-says-epf

I believe that the EPF account holders have the option to diversify their holdings.. which means that we could also opt to diversify our monthly contribution to both conventional account and KWSP-I account..

As i know, some investors might take the opportunity to diversify..

Just sharing my view..

I think is to address the concern that epf investment are not Syariah compliance. So some may see the money as "haram" So for those who choose Syariah, I am sure epf investment will be Syariah compliance while those who choose conventional account, need not have Syariah compliance. But both will still achieved the same amount of dividends.

As posted earlier, islamic deposit/account principal is always based on profit sharing, (as islamic deposit/account doesn't have "fixed interest rate" to start with) so the written act mentioned conventional account has 2.5% min while KWSP-I doesn't.

As mentioned in the wording published those not elected to convert to -i account remain as conventional account which has 2.5% min as same as what is stated in previous EPF act 1991.

The issue is similar to conventional bank vs islamic banking.

Hope there is no double standard like ASB2 n ASM/ASW/AS1M, similar funds but one has better returns than the others.
But at least all are given the choice to switch to KWSP-i.


This post has been edited by MGM: Oct 21 2015, 09:47 AM

Not taken effect means its being done.

However the others statement is clear on those who choose not to take up the Syariah fund

Since in the EPF Act, they already have the power why is it new?



The report does not say that those who elect NOT follow the Syariah principles would get their dividends according to the performance of the fund. Or is that taken as it is?

Are there going to be two funds?

Cause Islamic banking stuff cannot have interest/dividend term in it. So come up with another name call profit sharing rate.

I am guessing one will be Syariah compliance, one does not need to. But returns will be the same. Is just amendments to the act to introduce Islamic account. That's all. After what cherroy wrote, that's just what happen

The 2.5% is not new, I don't know why some news made it like a new one.

The amendment needed because there will have 2 EPF account KWSP and KWSP-i

As you cannot have an old act to say "EPF must give minimum 2.5% to EPF account", as this statement will cover the KWSP-i as well.

Performance of fund is similar to profit sharing principal in shariah compliance.

While conventional EPF has been following performance basic as well over the history, although the act never state it.

shit, epf/gov just forcing us to agree to our money to be invested to I product, benefitting/diverting fund to support I business/product....

intention is so so so obvious... take our money to fund them

This post has been edited by vincentwmh: Oct 21 2015, 11:01 AM

just robbing our money to fund I business/product. this is DAY-LIGHT ROBBERY, the bait is only 2.5% dividen if u opt NOT to

next year, those opt in syariah gets 7.8% while conventional gets 2.8%

This post has been edited by vincentwmh: Oct 21 2015, 11:00 AM

Basically, it reads as a pre-emptive statement. To let contributors know that, if you do not subscribe to the Syariah account, their obligation to you is minimum 2.5%, whereas it is possible that the Syariah account may yield higher dividend. Hence, contributors cannot claim foul when it drops from 6.x% to suddenly 2.5%.

That is another messed up system and another way for them to utilize our money, whereby they want all your money to be in the Syariah account. Or face the consequences of lower yield in the conventional account. They're saying, you non-muslims can enjoy lower yield if you don't want to place them in Syariah compliant account.

Yet another way to utilize the non-muslims contributions, to yield better returns but pay better dividends to the Syariah account contributors. Way to go Malaysia. Another milestone in the f****d up system.

for non-muslim contributors, its time to cash out max, then reinvest into ah-long

are you cashing out max?

McFD2R Geez. Don't be so negative about Islamic product. Did you know that maybank Islamic efd 1 month beats all normal efd by margin of 0.1%? Conventional efd is 3.15% while the Islamic efd is 3.25%.Islamic product is not always bad. Is just different name for same concept.

You are forgetting that the other act said conventional epf still can give minimum of 2.5% same with the new act which said Islamic epf also give minimum 2.5%

This post has been edited by Ramjade: Oct 21 2015, 11:23 AM

People want to withdraw let them redraw. Don't stop them.
Remember pain is the best teacher

Not true, please do not throw accusation simply, it is a defamation statement.

Conventional is guaranteed to have 2.5%, whilst none in KWSP-i.
If EPF make no profit, then there will be no profit can be shared under -i, while conventional is guaranteed to have 2.5%.

While conventional EPF has been declaring dividend based on fund performance throughout the history.
It is not the like current 6% will drop to 2.5% next year due to introduction of KWSP-i.

So please be more objective in throwing in opinion.

The issue won't be much different with syariah compliance unit trust, islamic banking/deposit etc.